Draft rules empowering CBIC to notify goods which are being imported at reduced values

In light of the amendments made in Section 14 of Customs Act, 1962 (‘Customs Act’), the Central Government has released draft Customs (Assistance in Value Declaration of Identified Imported Goods) Rules (‘Assistance in Value Declaration Rules’). The salient features are briefly discussed hereunder:

The Assistance in Value Declaration Rules provide for constitution of Screening Committee and Evaluation Committee which will be responsible for identifying goods in respect of which it observes a trend that goods are being imported at reduced values;

Based on the observations of Screening Committee and Evaluation Committee, the CBIC may notify the class of such goods. The notification shall also specify the following points:

• Complete description of class of imported goods with their tariff classication;
• Unit quantity code which shall necessarily be declared in the bill of entry; and
• Technical or other specifications required to be additionally declared in the bill of entry.

In the absence of requisite information, the proper officer may reject the declared value, and proceed to determine assessable value on its own account. The notification shall remain valid for a period not lower than one year, but not exceeding 2 years.

Imports of following categories shall not be subjected to the scrutiny under Assistance in Value Declaration Rules:

• Imports not involving customs duty;
• Goods for which tariff value has been fixed by CBIC under Section 14(2) of Customs Act;
• Goods exigible to customs duty on specific rate basis;
• Import of inputs under any authorisation or licence issued under Foreign Trade Policy issued under Foreign Trade (Development and Regulation) Act, 1992;
• Imports cleared to bonded warehouse in terms of Manufacture and Other Operations in Warehouse (No. 2) Regulations, 2019;
• Imports forming subject matter of special valuation branch proceedings;
• Project imports;
• Imports by government and public sector undertakings;
• Imports in non-commercial quantities;
• Goods imported for the purpose of re-export;
• Such other categories of imports as may be specified by CBIC